Zebra Stripes Would Like to Sell 500 Shares of Stock

question 52

Multiple Choice

Zebra Stripes would like to sell 500 shares of stock using the Dutch auction method.The bids received are as follows: Bidder A: 100 shares at $26;Bidder B: 300 shares at $25: Bidder C: 200 shares at $25;and Bidder D: 500 shares at $24.What will be the gross proceeds from this auction?

• A)$27,100
• B)$13,000
• C)$12,500
• D)$14,600
• E)$12,000

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Definitions:

Fair Market Value

The price at which a property would sell under normal conditions in an open and competitive market.

Recognized Gain

This is the portion of gain realized from the sale or exchange of an asset that is subject to taxation under the IRS code.

Sales Commission

A fee or percentage of a sale amount paid to salespeople, typically as an incentive for sales performance.

Legal Fees

Costs incurred for legal services, which can sometimes be deductible on a tax return depending on the nature of the legal issue.